Before you start a new business it is absolutely fundamental that you to ask yourself the question:
Is there a market for my products and / or services ?
Clearly you will not make significant profits if consumers do not like or need your product.It is essential that you do market research before you invest too much money in preparing the products / services for market:
· To keep your costs down you can do face to face surveys. Make sure you choose the right location. For example, if you present a new design of suit carrier, standing outside a McDonalds restaurant is likely to give inaccurate results. Whereas standing at the entrance of London Bridge railway station approaching city workers at rush hour should give good feedback whether the market really wants your product. Take the opportunity to seek feedback regarding acceptable price, colour etc
· For products an initial sale via eBay can be useful in evaluating demand and pricing before you purchase a large batch of stock
· Telephone market research is commonly used. Make sure a suitable search database is used to select leads from the right demographic sample, otherwise high costs may be incurred for wasted calls.
Good market research will help reduce the risk of business failure.
Certax Accountancy Camberley is an accountancy practice with a difference.They are proactive in helping you develop your business as well as minimising your tax liability.
Contact Mike Loughton - 01276 451465 mikeloughton@certax.co.uk
